Question

18. A sum was lent at 20% p.a. compound interest,
interest being compounded annually. The interest for
the first year was 4000. Find the total interest for the
second and third years (in *).

Answer 1

Answer:

R = 20 % P.A

Paid back after 1st year = 1200

Paid back after year to clear the loan = 1440

Let, P = x

Then = \left ( \frac{120}{100}x-1200 \right )\times \frac{120}{100}=1440

\frac{(120x-12000)}{100}=\frac{144000}{120}

1440x=\frac{2880000}{1440}

x=2000